Missouri AG Warns Of Lottery Scam Using Bogus Checks From Missouri-Based Utility Company

September 13, 2007 -- Jefferson City, Mo. — Missouri Attorney General Jay Nixon is warning consumers about a new lottery scam using checks that appear to come from Aquila, the Kansas City-based utility company.

In what Nixon calls a typical lottery scam, a consumer receives a letter saying he or she has won a large sum of money in something called “Power Lotto Payout.” Enclosed is a check for $3,120 drawn on an Aquila bank account. The letter asks the consumer to deposit the check and wire a portion of that money to another party. This wire transfer supposedly covers processing fees. But consumers who follow these instructions later find out the Aquila check has bounced.

Article continues below...

“Consumers need to be on the lookout for these scams,” Nixon said. “The letter is exciting, the check looks real and the instructions seem simple. But the only thing these consumers get in return is a massive withdrawal of their own money.”

Because the checks used in this scam are bogus, Aquila’s bank is refusing to cash them. So far, Aquila says consumers have attempted to cash more than $250,000 worth of these checks.

Nixon’s office is working with Aquila to track down the perpetrators of the scam. So far, no Missouri consumers have reported receiving these solicitations.

Lottery scams are reported daily to the Attorney General’s Consumer Protection Hotline. Nixon says any unsolicited lottery notification is a scam. Another red flag in this case is the request to cash a check and wire money elsewhere. Wire transfer is one of the most common forms of payment to con artists.

Nixon urges consumers to always be suspicious of sending money to strangers such as those sending the checks in this lottery scam. Consumers can report scams by filing a consumer complaint at the Attorney General’s Web site, ago.mo.gov, or the Consumer Protection Hotline, 1-800-392-8222.

Source: Missouri Attorney General